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The 1,246-page document details the terms of trade, law enforcement and dispute resolution, as well as other procedures that the UK and EU will follow after December 31.
The treaty, agreed on Thursday, is due to be ratified by the British parliament next week and will provisionally enter into force in the EU until next month’s vote in the European Parliament (EP).
The document will replace the transitional trade agreement, which expires next Thursday.
We review the main points of the contract:
Rates
The agreement avoids tariffs or quotas on almost all goods produced in the UK and the EU that move from one country to another.
UK exports must comply with EU health and safety regulations and compliance rules; There are strict rules governing products made with parts sourced outside of the EU or the UK.
Disputes
The UK has refused to participate in the work of the European Court of Justice, and if no solution is found during the consultation, disputes will be resolved by the World Trade Organization (WTO) or ad hoc arbitration tribunals. comprised of three independent business and legal experts.
The joint agreement will be supervised by an “Association Council” made up of representatives of both parties.
The different aspects of the contract will be supervised by various committees within this council. There is also the possibility for MPs and MEPs to create a “Parliamentary Association Assembly”.
Fishing
The difficult issue of EU fishermen’s access to Britain’s rich waters has been resolved by a compromise: the EU quota will be reduced by 25% over a transition period of six and a half years.
This will be followed by annual negotiations on how much fish EU vessels will be able to catch in British waters.
If the UK limits EU access or catches, Brussels may retaliate by imposing tariffs on UK fish or other goods, or even suspending most of the trade deal, keeping the rules of fair competition.
An arbitral tribunal can be convened to ensure that the penalty is proportionate to the available evidence of harm.
Equal treatment
The EU has called for a level playing field in the deal so that British companies cannot compete with European companies for lower labor, environmental or tax standards or unfair subsidies.
The UK will create an independent decision-making body in the field of competition law and will play the same role as the European Commission. The two institutions will adhere to common principles.
Temporary subsidies related to a “national or global economic crisis”, such as the effects of a coronavirus pandemic, will not be prohibited if they are “proportionate.”
The courts of both countries, including the Court of Justice of the European Communities, although not specifically mentioned in this part of the agreement, will have to rule on retaliatory trade measures against unfair subsidies.
customs
At the end of the year, Britain will leave the EU customs union with the single market, which means that companies will face new bureaucratic obstacles to importing and exporting goods through the English Channel.
The UK has said that the deal allows for the recognition of “trustworthy traders” mechanisms that could cut red tape on both sides, but it is not yet clear how widely it could be applied.
Security
Under the agreement, the parties will continue to exchange DNA, fingerprints and passenger data, and will cooperate through Europol.
Brussels says that “cooperation on security matters may be suspended if the UK breaches its commitment to continue to comply with the European Convention on Human Rights.”
“Big changes”
Despite the agreement, both parties warn that “big changes” await individuals and businesses across Europe from January 1.
Citizens of the UK and the EU will no longer be able to move, work and live freely between the two countries.
“The free movement of people, goods, services and capital between the UK and the EU will end,” the Brussels report said after the deal was reached.
The agreement specifies which business travelers will not need a visa for short trips. Musicians and performers are not on this list, which means they may need visas to perform paid concerts abroad.
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